ALL 20 ACQUITTED IN JERSEY MOB CASE

By JESUS RANGEL, Special to the New York Times

Published: August 27, 1988

NEWARK, Aug. 26—
One of the longest criminal trials in the United States ended abruptly today with the acquittal of 20 defendants accused of making up the entire membership of the Lucchese crime family in New Jersey.

The defendants and their friends erupted in cheers and applause in Federal District Court here as the foreman of a jury selected 21 months ago read 77 separate not guilty verdicts. The jury had deliberated for 14 hours.

The case was a major loss for the Government, which has used large and lengthy racketeering trials to jail several organized-crime leaders in New York City and elsewhere. 'Increases Our Resolve'

''The jury said never, never again should the Government waste the public's money this way,'' said Maria Noto, whose client, Daniel Ricciardi, 33 years old, was accused of selling cocaine.

She said the jury ''rejected the script written by the Government and its paid witnesses.''

Samuel A. Alito, the United States Attorney for New Jersey, said: ''This only increases our resolve. Obviously we are disappointed, but you realize you can't win them all.

The 20 defendants, described by law-enforcement officials as ''young, aggressive, intelligent and sophisticated,'' were accused of running a criminal enterprise here and in Florida that included the sale and distribution of cocaine, as well as credit-card fraud, gambling and loansharking from 1976 to 1985, when they were indicted.

The prosecutor contended that the Lucchese organization controlled a lucrative network that brought drugs to New Jersey and New York and maintained close working relations with members of the Genovese and other crime families in the New York metropolitan region.

But the defense contended that the prosecution was overzealous, finding conspiracies and fraud where they did not exist.

''The jury saw through everything and did what justice required,'' said Stephen H. Skoller, who represented Anthony Accetturo, 49, of Hollywood, Fla. Mr. Accetturo was accused of being the leader of the organization in New Jersey.

''Unfortunately, this won't deter the Government from pursuing this type of case again,'' Mr. Skoller said.

Relied on Wiretaps The Government, relying heavily on wiretaps obtained from a restaurant in the Ironbound section of Newark known as the Hole-in-the-Wall, where the defendants were said to operate, also presented several convicted criminals as key witnesses. More than 90 witnesses testified altogether.

The star witness for the Government was Joseph Alonzo, an admitted drug addict and alcoholic who was convicted of shooting his cousin, a defendant, five times.

The Government had used the case as a symbol of its efforts to crush organized crime in New Jersey not only in such traditional areas as illegal gambling and narcotics but also in legitimate enterprises such as the construction industry.

The trial is considered to be the longest criminal proceeding in the country, surpassing the ''pizza connection'' heroin smuggling case in New York City, which ended in March 1987 after 17 months. The trial in New Jersey cost millions of dollars, including fees for some defendants' court-appointed lawyers, although the exact cost has yet to be determined.

Juror fees alone cost the court more than $1,200 a week while the cost of protecting Government witnesses ran into the hundreds of thousands of dollars. Length of Deliberations

The short time it took the jury to deliberate took both sides by surprise. The jurors had available to them more than 40,000 pages of transcripts and 850 exhibits.

And Mr. Alito said that while some of the testimony in those transcripts was from disreputable witnesses, as the defense asserted, there was testimony from others who were not confederates of the defendants.

At the same time, the Justice Department has been successful in prosecuting the heads of four of New York City's major Mafia families with the testimony of the organized crime groups' former associates. It lost a case, however, in March 1987 when a jury acquitted John Gotti, the man the authorities say is the head of the Gambino family.

The defendants here were clearly elated as they left one door of the courthouse, marched down the street cheering and went to another door, where the jurors were expected to exit.

As the 12 jurors were escorted by Federal marshals to a waiting van, the defendants again applauded and cheered and thanked them.

Some of the jurors waved back. Several cried, and one yelled, ''Good luck!'' Refused to Believe Criminals

The jurors refused to comment on the case, telling marshals they did not want to be approached by reporters.

''This was a situation where the defendants deserved what they got,'' said Robert Brown, a lawyer who represented James Fede, 33, of Newark. ''The jury has been listening to thugs, liars and drug addicts for 21 months. No wonder they don't want to talk.'' Thomas Ashley, who represented Gerald Cohen, 46, of Pompano Beach, Fla., also thanked the jury, saying, ''They fully understood the case.''